Cybex net sales for the third quarter were $24.9 million versus $21.8 million for the comparable 2003 period, an increase of 14%. Net income for the quarter ended September 25, 2004 was $410,000 or 3 cents per share on a fully diluted basis, compared to a net loss of $953,000, or 12 cents per share on a fully diluted basis in 2003.
Net sales for the nine months ended September 25, 2004 were $73,220,000 compared to $63,608,000 for 2003, an increase of 15%. The net income for the nine months ended September 25, 2004 was $1,618,000 or $0.12 per fully diluted share, compared to a net loss of $2,557,000, or $0.30 per fully diluted share, for the prior year period.
John Aglialoro, Chairman and CEO stated, “The continued improvement in our financial results is based on the Cybex business strategy – providing exceptional products to our customers. We are pleased with the increase in sales, confirming to us that the new Cybex product lines meet the market's expectation for quality and innovation.”
As previously announced, the Company in July 2004 refinanced in full its term loan facility with Hilco Capital and agreed to modifications to its working capital and term loans with CIT Group/Business Credit, which result in lower interest costs. The interest savings in the third quarter 2004 were offset, however, by the expensing in the quarter of the entire unamortized balance of deferred financing costs under the retired Hilco facility of approximately $340,000. Also, as previously announced, during August 2004 the Company sold 2,430,000 shares of Common Stock in a private placement to accredited investors in which it received net proceeds of approximately $7,230,000 and issued 3,288,600 shares of Common Stock upon conversion of all its outstanding shares of Preferred Stock.
CYBEX INTERNATIONAL, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(IN THOUSANDS, EXCEPT PER SHARE DATA)
Three Months Ended Nine Months Ended
September September September September
25, 2004 27, 2003 25, 2004 27, 2003
--------- --------- --------- ---------
Net sales $24,909 $21,886 $73,220 $63,608
Cost of sales 16,285 14,877 46,444 42,682
--------- --------- --------- --------
Gross profit 8,624 7,009 26,776 20,926
As a percentage of net
sales 34.6% 32.0% 36.6% 32.9%
Selling, general and
administrative expenses 7,178 7,000 22,231 20,914
--------- --------- --------- --------
Operating income 1,446 9 4,545 12
Interest expense, net 1,007 956 2,888 2,620
--------- --------- --------- --------
Income (loss) before income
taxes 439 (947) 1,657 (2,608)
Income tax provision
(benefit) 29 6 39 (51)
--------- --------- --------- --------
Net income (loss) 410 (953) 1,618 (2,557)
Preferred stock dividends (32) (122) (276) (122)
--------- --------- --------- --------
Net income (loss)
attributable to common
stockholders $378 $(1,075) $1,342 $(2,679)
========= ========= ========= ========
Basic net income (loss) per
share $0.03 $(0.12) $0.13 $(0.30)
========= ========= ========= ========
Diluted net income (loss)
per share $0.03 $(0.12) $0.12 $(0.30)
========= ========= ========= ========
Shares used in computing
basic net income (loss)
per share 12,337 8,831 10,042 8,831
========= ========= ========= ========
Shares used in computing
diluted net income (loss)
per share 14,566 8,831 11,132 8,831
========= ========= ========= ========
